Increase in CIÉ fares ‘should be linked to service’

THE Government should refuse a request by CIÉ to raise fares until it improves services for commuters, the head of the Consumers’ Association said last night.

CIÉ has asked for a 9% increase before the end of December. Sources within the Department of Transport said it was unlikely the 9% rise would be agreed to, but no binding decisions have been taken at this stage.

A spokeswoman for Transport Minister Martin Cullen said officials from the department were in discussions with CIÉ representatives and a decision was likely within a few weeks.

If the CIÉ request is granted, it will be the third major increase for consumers this year, with gas and electricity bills rising by 34% and 20% respectively.

CIÉ said the rise was necessary because of increased costs over the past year.

It will mean a train ticket from Dublin to Cork will rise by €5, while the €1.80 cost of a Dublin bus fare will increase by 15 cent.

A spokesman for CIÉ said the rising cost of fuel and an increase in workers’ salaries, as laid out in the national wage agreement were behind the request.

Last year, the Government refused a CIÉ request for a 7.5% increase, giving 3.8% instead.

Consumers’ Association of Ireland chief Dermott Jewell, said the Government should only consider the CIÉ request when the company meets its improved service commitments.

“Any increase over the rate of inflation is unacceptable,” said Mr Jewell.

“The quality of the level of service being provided still needs to be improved.

“We are still waiting on integrated ticketing and other improvements that should be implemented before a price rise is considered. Consumers are under enough pressure as it is.”

CIÉ currently receives an annual government subsidy of €987 million.

If the increase is approved by the Government it would come into effect in January, the same time as electricity prices are set to rise by 20% for domestic consumers.

Consumers’ associations estimate that the combined cost of the electricity and gas price rises will cost the average consumer an extra €450 per year.

Increased travel fares would add an estimated €50 to €60 to that bill.

Opposition TDs condemned the CIÉ request, describing it as “unacceptable”. Fine Gael’s finance spokesman, John Bruton, claimed Ireland was the most expensive country in the eurozone and blamed Government policies for driving inflation.

“Wherever the Government is involved, or there is State regulation, prices are being pushed up for consumers,” he told reporters.

Environmental groups also said the price rises would deter the public from using public transport and increase the use of cars.